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July 27 (Renewables Now) – Belgian Transmission System Operator (TSO) Elia System Operator SA / NV will buy the 20% stake it does not already own in 50Hertz Transmission GmbH just so it could owned by KfW.
Elia said in a statement on Friday that it has exercised its pre-emption right on the stake in Eurogrid International, which is the holding company of German sector player 50Hertz. Immediately after buying the stake from the Australian investment manager IFM Global Infrastructure Fund, Elia will sell it to KfW at the same financial conditions to foster a Belgian-German cooperation regarding critical grid infrastructure, it said.
Separately, the German government explained that KfW will make the investment for security reasons and it is a temporary measure.
With this move, Germany is the latest addition to the TSO.
Elia increased its 50Hertz stake to 80% from 60% in April for about EUR 989 million (USD 1.15bn) in order to achieve the full potential of its growth strategy. However, the Belgian company did not consider buying the remaining 20% of 50Hertz Transmission is a TSO active in the North and the East of Germany (19659002) , one of four that operates in the country. The company is responsible for the transportation of the wind power generated by plants in the German Baltic Sea to the onshore power grid.
Elia expects all transactions to close in the third quarter of 2018. Eurobond through the issue of long-term debt instruments, including EUR 700 million of hybrid bonds and EUR 300 million of unsubordinated senior bonds
(EUR 1.0 = USD 1,166)
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